MGM Resorts Intl Highlights Sports In Presentation To Analysts, Investors
By ALAN SNEL
LVSportsBiz.com
MGM Resorts International is hooking its wagons to Las Vegas’ growing sports industry, explaining to analysts and investors Thursday that visitors coming for sports and entertainment spend more per trip than the average visitor and that esports is the fastest growing segment in the local sports industry.
MGM Resorts talked up the financial relevance of sports in Las Vegas and their impact on its properties along the Strip — during the analyst and investor day event. LVSportsBiz.com checked out the presentation online.
“Spectator sports is the largest growth opportunity within entertainment for MGM Resorts,” according to the MGM Resorts International presentation Thursday. “Esports is the fastest growing segment in live entertainment.”
MGM Resorts has already invested millions of dollars in its sports portfolio. The owner of the most hotel-casino properties along the Strip owns 42.5 percent of T-Mobile Arena (along with AEG, also 42.5 percent, and Vegas Golden Knights majority owner Bill Foley, 15 percent); purchased and then re-branded its WNBA Las Vegas Aces women’s basketball team and opened a new esports venue in Luxor.
MGM Resorts is also a title sponsor for the NBA Summer League staged at UNLV every July and hopes to host an NBA team one day in T-Mobile Arena. It’s doubtful an NBA team will come to Las Vegas before the Raiders move here from Oakland in 2020, but it could be a possibility in the few years after the Raiders stadium opens. NBA Commissioner Adam Stern has talked with MGM Resorts International CEO Jim Murren about the subject.
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MGM Resorts believe the Raiders’ new $1.8 billion stadium will bring 45 annual events, including 10 Raiders games (eight regular season and two preseason) and six UNLV games, driving visitors to MGM Resorts’ hotels. The 65,000-seat, domed stadium is being built on the west side of Interstate 15, across the highway from MGM Resorts’ Mandalay Bay.
MGM Resorts International summarized the spending power impact of sports.
In this graphic, MGM Resorts shows the spending power of sports fans when they visit Las Vegas, citing Las Vegas Convention and Visitors Authority visitor profiles and Las Vegas Events data.
While total visitors spend an average of $1,320 per visit to Las Vegas, basketball tournament visitors spend an average of $,1620 (T-Mobile Arena hosts the Pac-12 tourney), the PBR World Finals visitors at T-Mobile Arena spend an average of $2,080 and the National Finals Rodeo visitors spend an average of $2,630 (event held at Thomas & Mack Center.)
Boxing fans spend the most, which is why the cancellation of the much heralded rematch boxing match between Saul “Canelo” Alvarez vs. Grennady “Triple G” Golovkin cost MGM Resorts millions of dollars in revenues.
MGM Resorts played up the importance of esports and its financial potential thanks to Las Vegas becoming a co-center of the video game player scene in the U.S. alongside Los Angeles.
It opened Esports Arena Las Vegas in the Luxor out of a former club that is used for video game competitions and broadcasts in a high-tech nightlife atmosphere
Here’s an MGM Resorts International website detailing the esports arena.
MGM Resorts International also invested $8 million-$10 million to update the Mandalay Bay Events Center as the new home for the company’s Las Vegas Aces WNBA team.
The Aces begin their 34-game regular season schedule May 20 in Connecticut and holds its home-opener May 27 at 5 p.m. when they host Seattle.
MGM Resorts is also bullish on sports gambling.
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